Vale SA, the world’s largest iron-ore producer, is heavily contemplating opening a second trans-shipment facility for mega-ships in Asia as the company struggles to gain access to Chinese ports. South Korea is among locations under consideration, but no word on when the decision will be made has been announced.

The Rio de Janeiro-based miner is still having discussions in China in a bid to win permission for its 400,000 deadweight ton ships to use local harbors, according to Bloomberg BusinessWeek. Vale has so far failed to regularly use Chinese ports as local ship owners complain about new competition worsening a capacity surplus and a collapse in rates. Sailing the ships to China remains the best solution for the steel mills in China and for Vale.

Vale has intentions to build a 35 mega-ship fleet, both leased and owned, in an $8 billion proposed plan. This week marked naming of the first two mega-ships for Oman Shipping Co. The vessels, built by China Rongsheng Heavy Industries Group Holdings Ltd., will next go through sea trials. The Omani company will eventually operate four mega-ships for Vale, which it will use to transport iron ore from Brazil to a facility in the Persian Gulf sultanate.
Source: The Journal of Commerce Online - Press Release